| newsletter_-2-24-12-final.pdf |
Millionaries on Capitol Hill: Please tax me more!
By LAURIE KELLMAN | AP – Wed, Nov 16, 2011
WASHINGTON (AP) -- Lobbyists for a day, a band of millionaires stormed Capitol Hill on Wednesday to urge Congress to tax them more.
They had a little trouble getting in. It turns out there are procedures, even for the really rich.
But once inside, their message was embraced by liberals and tolerated by some conservatives — including the ideological leader of anti-tax lawmakers, who had some advice for them, too. "If you think the federal government can spend your money better than you can, then by all means" pay more in taxes than you owe, said Grover Norquist, of Americans for Tax Reform, a group that has gotten almost all congressional Republicans to pledge to vote against tax hikes. The IRS should have a little line on the form where people can donate money to the government, he suggested, "just like the tip line on a restaurant receipt."
One of the millionaires suggested that if Norquist wanted low taxes and less government, "Renounce your American
citizenship and move to Somalia where they don't collect any tax."
To read the full story click on the picture above.
WASHINGTON (AP) -- Lobbyists for a day, a band of millionaires stormed Capitol Hill on Wednesday to urge Congress to tax them more.
They had a little trouble getting in. It turns out there are procedures, even for the really rich.
But once inside, their message was embraced by liberals and tolerated by some conservatives — including the ideological leader of anti-tax lawmakers, who had some advice for them, too. "If you think the federal government can spend your money better than you can, then by all means" pay more in taxes than you owe, said Grover Norquist, of Americans for Tax Reform, a group that has gotten almost all congressional Republicans to pledge to vote against tax hikes. The IRS should have a little line on the form where people can donate money to the government, he suggested, "just like the tip line on a restaurant receipt."
One of the millionaires suggested that if Norquist wanted low taxes and less government, "Renounce your American
citizenship and move to Somalia where they don't collect any tax."
To read the full story click on the picture above.
Tax Season 2011
Those Who Itemize Must Wait Until February to File
Due to late tax law changes, the IRS announced that taxpayers claiming certain items on their return will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February. These items include returns involving— the state and local sales tax deduction, higher education tuition and fees deduction or educator expenses deduction as well as those taxpayers who itemize deductions on Form 1040 Schedule A.
"The majority of taxpayers will be able to fill out their tax returns and file them as they normally do," said IRS Commissioner Doug Shulman. "We will do everything we can to minimize the impact of recent tax law changes on other taxpayers. The IRS will work through the holidays and into the New Year to get our systems reprogrammed and ensure taxpayers have a smooth tax season."
The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the late tax law changes. Meanwhile, people in the affected categories can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes.
Inflation Adjusted Exemptions and Deductions
Personal exemptions and standard deductions for tax year 2011 were released by the IRS. These inflation adjustments relate to eight tax provisions that were either modified or extended by the Tax Relief Act. Some of the adjustments include:
On December 17, 2010, President Obama signed the long awaited Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Act not only extends the Bush tax cuts that were set to expire at the end of 2009, it provides an AMT patch, creates incentives for businesses and individuals, and retroactively reinstates the estate tax.
New Guidance on FSA and HRA Debit Cards
The IRS issued guidance allowing the continued use of health flexible spending arrangement (FSA) and health reimbursement arrangement (HRA) debit cards for the purchase of prescribed over-the-counter drugs.
Effective after Jan. 15, 2011, in accordance with the new guidance, this use of debit cards must comply with procedures reflecting those that pharmacies currently follow when selling prescribed drugs. The procedures require that a prescription for the medication be presented and that proper records be retained.
The new guidance, IRS Notice 2011-5, as well as answers to frequently asked questions on IRS.gov contain further details on health FSA and HRA debit card purchases, including purchases from health care providers other than pharmacies, mail order and web-based vendors.
Government Program to Shut Down Schemes and Scams
The Department of Justice, Tax Division, working together with the IRS, has intensified its efforts to shut down fraudulent tax return preparers and promoters of tax-fraud schemes, using both civil and criminal enforcement. Under the Tax Division’s civil injunction program, the Division files a lawsuit seeking a court order that prohibits a person from engaging in certain activities or requires a person to take certain affirmative actions.
With each additional court order, the Division comes closer to being able to assure honest taxpayers that those who would cheat are not getting away with it. The Tax Division will continue to use its successful injunction program to bring more cases to light until the problem is solved.
Reprint from NATP
Due to late tax law changes, the IRS announced that taxpayers claiming certain items on their return will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February. These items include returns involving— the state and local sales tax deduction, higher education tuition and fees deduction or educator expenses deduction as well as those taxpayers who itemize deductions on Form 1040 Schedule A.
"The majority of taxpayers will be able to fill out their tax returns and file them as they normally do," said IRS Commissioner Doug Shulman. "We will do everything we can to minimize the impact of recent tax law changes on other taxpayers. The IRS will work through the holidays and into the New Year to get our systems reprogrammed and ensure taxpayers have a smooth tax season."
The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the late tax law changes. Meanwhile, people in the affected categories can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes.
Inflation Adjusted Exemptions and Deductions
Personal exemptions and standard deductions for tax year 2011 were released by the IRS. These inflation adjustments relate to eight tax provisions that were either modified or extended by the Tax Relief Act. Some of the adjustments include:
- The value of each personal and dependent exemption available to most taxpayers is $3,700, a $50 increase from 2010.
- The new standard deduction is $11,600 for married couples filing a joint return, a $200 increase; $5,800 for singles and married individuals filing separately, a $100 increase; and $8,500 for heads of household, a $100 increase. The additional standard deduction for blind people and senior citizens is $1,150 for married individuals and $1,450 for singles and heads of household, each an increase of $50. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
- Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $69,000, up from $68,000 in 2010.
- The maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,751, up from $5,666 in 2010. The maximum income limit for the EITC rises to $49,078, up from $48,362 in 2010. The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children.
- The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $102,000 for joint filers, up from $100,000, and $51,000 for singles and heads of household, up from $50,000.
On December 17, 2010, President Obama signed the long awaited Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Act not only extends the Bush tax cuts that were set to expire at the end of 2009, it provides an AMT patch, creates incentives for businesses and individuals, and retroactively reinstates the estate tax.
New Guidance on FSA and HRA Debit Cards
The IRS issued guidance allowing the continued use of health flexible spending arrangement (FSA) and health reimbursement arrangement (HRA) debit cards for the purchase of prescribed over-the-counter drugs.
Effective after Jan. 15, 2011, in accordance with the new guidance, this use of debit cards must comply with procedures reflecting those that pharmacies currently follow when selling prescribed drugs. The procedures require that a prescription for the medication be presented and that proper records be retained.
The new guidance, IRS Notice 2011-5, as well as answers to frequently asked questions on IRS.gov contain further details on health FSA and HRA debit card purchases, including purchases from health care providers other than pharmacies, mail order and web-based vendors.
Government Program to Shut Down Schemes and Scams
The Department of Justice, Tax Division, working together with the IRS, has intensified its efforts to shut down fraudulent tax return preparers and promoters of tax-fraud schemes, using both civil and criminal enforcement. Under the Tax Division’s civil injunction program, the Division files a lawsuit seeking a court order that prohibits a person from engaging in certain activities or requires a person to take certain affirmative actions.
With each additional court order, the Division comes closer to being able to assure honest taxpayers that those who would cheat are not getting away with it. The Tax Division will continue to use its successful injunction program to bring more cases to light until the problem is solved.
Reprint from NATP
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Don't Miss This FREE 2 Hour Presentation
with Attorney Caprice Collins
What Every Person Needs to Know About Taxes and Estates in 2011
When we die, we want to pass along our assets to our family while paying the least possible taxes. Join us at an Estate and Tax Planning seminar conducted by Attorney Caprice L. Collins, and learn how planning for the future can benefit you and your family.
Ø Avoid Probate Delays and Expenses and Leave a Financial and Value-Based Legacy!
Ø Preserve Your Money From Irresponsible Behavior, Divorce and Lawsuits of Your Heirs!
Ø Protect Your Family from Losing Their Inheritance from a Surviving Spouse in the case of
remarriage through “Remarriage Protection”.
Ø Save Estate Taxes – Give Your Money to Your Family and NOT to IRS or California!
Saturday, December 11, 2010 - 10am to 12noon
Imperial Heights Church of the Brethren
1909 W. Imperial Hwy, Los Angeles, CA 90047
To register or for more information call (310) 295-2215
Refreshments will be served
********************************************************************************************************************************************************
When we die, we want to pass along our assets to our family while paying the least possible taxes. Join us at an Estate and Tax Planning seminar conducted by Attorney Caprice L. Collins, and learn how planning for the future can benefit you and your family.
Ø Avoid Probate Delays and Expenses and Leave a Financial and Value-Based Legacy!
Ø Preserve Your Money From Irresponsible Behavior, Divorce and Lawsuits of Your Heirs!
Ø Protect Your Family from Losing Their Inheritance from a Surviving Spouse in the case of
remarriage through “Remarriage Protection”.
Ø Save Estate Taxes – Give Your Money to Your Family and NOT to IRS or California!
Saturday, December 11, 2010 - 10am to 12noon
Imperial Heights Church of the Brethren
1909 W. Imperial Hwy, Los Angeles, CA 90047
To register or for more information call (310) 295-2215
Refreshments will be served
********************************************************************************************************************************************************
One-Time Filing Relief for Small Nonprofit Organizations
The IRS announced a onetime filing relief for tax-exempt organizations that fail to satisfy annual filing requirements for three consecutive years automatically lose their tax-exempt status. The IRS is providing one-time relief that will allow small exempt organizations to come back into compliance and retain their tax-exempt status even though they failed to file for three consecutive years. If an organization loses its exemption, it will have to reapply to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.
This one-time relief benefits Form 990-N (e-Postcard) and Form 990-EZ filers only. Organizations required to file Form 990 or Form 990-PF are not eligible and are automatically revoked if they fail to file for three consecutive years.
If your Nonprofit is at risk we can assist you to retain your tax-exempt status. Click here for more information.
This one-time relief benefits Form 990-N (e-Postcard) and Form 990-EZ filers only. Organizations required to file Form 990 or Form 990-PF are not eligible and are automatically revoked if they fail to file for three consecutive years.
If your Nonprofit is at risk we can assist you to retain your tax-exempt status. Click here for more information.
The new health reform law gives a tax credit to certain small employers that provide health care coverage to employees.
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Six Tips for Students with a Summer Job
School’s out and many students now have a summer job. Some students may not realize they have to pay taxes on their summer income. Here are the six things the IRS wants everyone to know about income earned while working a summer job.
1. All employees fill out a W-4, Employee’s Withholding Allowance Certificate, when starting a new job. This form is used by employers to determine the amount of tax that will be withheld from your paycheck. If you have multiple summer jobs you will want to make sure all your employers are withholding an adequate amount of taxes to cover your total income tax liability. To make sure your withholding is correct, use the Withholding Calculator on IRS.gov.
2. Whether you are working as a waiter or a camp counselor, you may receive tips as part of your summer income. All tip income you receive is taxable income and is therefore subject to federal income tax.
3. Many students do odd jobs over the summer to make extra cash. Earnings you received from self-employment are subject to income tax. These earnings include income from odd jobs like baby-sitting and lawn mowing.
4. If you have net earnings of $400 or more from self-employment, you will also have to pay self-employment tax. This tax pays for your benefits under the Social Security system. Social Security and Medicare benefits are available to individuals who are self-employed the same as they are to wage earners who have Social Security tax and Medicare tax withheld from their wages. The self-employment tax is figured on Form 1040, Schedule SE.
5. Food and lodging allowances paid to ROTC students participating in advanced training are not taxable. However, active duty pay – such as pay received during summer advanced camp – is taxable.
6. Special rules apply to services you perform as a newspaper carrier or distributor. You are a direct seller and treated as self-employed for federal tax purposes if you meet the following conditions:
Posted 7/12/10 from IRS
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Six Tips for Students with a Summer Job
School’s out and many students now have a summer job. Some students may not realize they have to pay taxes on their summer income. Here are the six things the IRS wants everyone to know about income earned while working a summer job.
1. All employees fill out a W-4, Employee’s Withholding Allowance Certificate, when starting a new job. This form is used by employers to determine the amount of tax that will be withheld from your paycheck. If you have multiple summer jobs you will want to make sure all your employers are withholding an adequate amount of taxes to cover your total income tax liability. To make sure your withholding is correct, use the Withholding Calculator on IRS.gov.
2. Whether you are working as a waiter or a camp counselor, you may receive tips as part of your summer income. All tip income you receive is taxable income and is therefore subject to federal income tax.
3. Many students do odd jobs over the summer to make extra cash. Earnings you received from self-employment are subject to income tax. These earnings include income from odd jobs like baby-sitting and lawn mowing.
4. If you have net earnings of $400 or more from self-employment, you will also have to pay self-employment tax. This tax pays for your benefits under the Social Security system. Social Security and Medicare benefits are available to individuals who are self-employed the same as they are to wage earners who have Social Security tax and Medicare tax withheld from their wages. The self-employment tax is figured on Form 1040, Schedule SE.
5. Food and lodging allowances paid to ROTC students participating in advanced training are not taxable. However, active duty pay – such as pay received during summer advanced camp – is taxable.
6. Special rules apply to services you perform as a newspaper carrier or distributor. You are a direct seller and treated as self-employed for federal tax purposes if you meet the following conditions:
- You are in the business of delivering newspapers.
- All your pay for these services directly relates to sales rather than to the number of hours worked.
- You perform the delivery services under a written contract which states that you will not be treated as an employee for federal tax purposes.
Posted 7/12/10 from IRS
Lil Wayne - Tax Lien
Public record of Dwayne Carter aka Lil Wayne (Weezy)
Another celebrity had a tax lien filed against them. This time it was the rapper, Lil Wayne. The IRS filed a tax lien of $1, 138, 760 for tax years 2004, 2005 and 2007. This is the second tax lien that has been filed against him. In 2008, he paid a tax lien for $977, 840.
If you have not filed your taxes, don't delay call me today. We can help you!
Posted 7/21/10
Another celebrity had a tax lien filed against them. This time it was the rapper, Lil Wayne. The IRS filed a tax lien of $1, 138, 760 for tax years 2004, 2005 and 2007. This is the second tax lien that has been filed against him. In 2008, he paid a tax lien for $977, 840.
If you have not filed your taxes, don't delay call me today. We can help you!
Posted 7/21/10
California's First-Time Buyer Credit Almost Gone!
State’s First-Time Buyer Credit Almost Gone As of June 15, 2010, we estimated receiving more than 15,000 applications claiming more than $78 million. Because many of these applications are duplicates or invalid, we plan to accept at least 28,000 applications to ensure all $100 million is credited.
We will announce the cut-off date on our website, giving at least 24-hours notice for applicants to fax their documentation. The credit will be allocated on a first-come, first-served basis using the date and time stamp on the fax. But, submission before the cutoff does not guarantee a credit; we will stop allocating credits once the $100 million is exhausted.
The First-Time Buyer Credit is expected to assist roughly 17,500 qualified buyers who purchase a qualified principal residence. A first-time buyer is someone who did not own a principal residence for the preceding three years. The home must be purchased (close escrow) on or after May 1, 2010. The buyer must reside in the home for at least two years immediately following the purchase date. This credit is equal to the lesser of five percent of the purchase price or $10,000.
To apply, Form 3549-A, Application for New Home / First-Time Buyer Credit, must be completed by the buyer and faxed, along with the final settlement statement, to us at 916.855.5577 within two weeks (14 calendar days) after the close of escrow.
California homebuyers still have time to qualify for the state’s other $100 million home tax credit for the purchase of a new home. The New Home Credit is available for taxpayers who purchase (close escrow) a new home after May 1, 2010, and before August 1, 2011, as long as they enter into an enforceable contract executed before January 1, 2011. The seller must certify that the home has never been previously occupied.
posted 7/12/10 from FTB website
We will announce the cut-off date on our website, giving at least 24-hours notice for applicants to fax their documentation. The credit will be allocated on a first-come, first-served basis using the date and time stamp on the fax. But, submission before the cutoff does not guarantee a credit; we will stop allocating credits once the $100 million is exhausted.
The First-Time Buyer Credit is expected to assist roughly 17,500 qualified buyers who purchase a qualified principal residence. A first-time buyer is someone who did not own a principal residence for the preceding three years. The home must be purchased (close escrow) on or after May 1, 2010. The buyer must reside in the home for at least two years immediately following the purchase date. This credit is equal to the lesser of five percent of the purchase price or $10,000.
To apply, Form 3549-A, Application for New Home / First-Time Buyer Credit, must be completed by the buyer and faxed, along with the final settlement statement, to us at 916.855.5577 within two weeks (14 calendar days) after the close of escrow.
California homebuyers still have time to qualify for the state’s other $100 million home tax credit for the purchase of a new home. The New Home Credit is available for taxpayers who purchase (close escrow) a new home after May 1, 2010, and before August 1, 2011, as long as they enter into an enforceable contract executed before January 1, 2011. The seller must certify that the home has never been previously occupied.
posted 7/12/10 from FTB website